With banks increasingly realizing potential losses on office loans, there's a looming possibility of a major repricing event, potentially leading to the demolition of many underutilized office buildings. Amidst this scenario, there lies an opportunity for the strategic conversion of select properties into residential spaces, which can present a promising avenue for urban revitalization.
"Yet the harsh reality remains – many structures simply lack the structural feasibility for cost-effective conversion," Gregor Watson, Co-Founder of 1Sharpe Capital, tells GlobeSt.com.
"Where a realistic path for such conversions exists, there will be substantial financial commitments required, so it becomes imperative to foster collaborations between government entities and private stakeholders," Watson said.
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